How do you determine whether a foreign individual working in China is subject to Chinese individual income tax?

For foreigners working in China, determining the applicability of individual income tax to one’s situation involves decoding a set of intersecting criteria and rules. Following this, you will need to calculate your precise liability and any applicable deductions. Lastly, consulting with a China taxation specialist can help optimize one’s overall income to achieve the most profitable package for you or your employees.
China’s Individual Income Tax Law recognizes eleven different categories of income, with a host of different deductions, tax rates and exceptions applying to each of them. To determine whether a foreign individual working in China is subject to Chinese tax, it is necessary to look at how much time he or she has spent in China, what is the source of his or her income, and where his or her employer is based. Income sourced within/outside of China is determined by the individual’s actual working period within China, regardless of whether the employer paying the income is based in China or not.